Shane created a quick Excel spreadsheet the other day and we looked more at how fees would affect our IRA and college investments.
The ELP planner charged a fee upfront (called a load or something like that) of 5.65%. So for every dollar we invest, a fee comes off that amount. Kind of yuck, if you ask me.
We then looked at the fees Vanguard charges, and I contacted the company for further clarification of how the fees work. They take .23% off the top of your account, so that fee does take away from your entire account balance — no matter if you had a gain or a loss.
Still, assuming an identically performing fund, we’d come out ahead if we did it ourselves with Vanguard.
So that’s what we’re gunna do.
P.S., this isn’t a one-size-fits-all solution. Do what’s best for you of course.